22
Friday
October 2021
5:43 AM IST
News Headlines
Actress Shruti Haasan launches parcos.com        Scotland bundle out Oman for 122        Arrest warrants against 12 war criminals in Bangladesh        Cabinet hikes DA for central govt employees        CGH Earth plans 10 caravan parks across Kerala        Milma launches ‘Deepavali Gift Box’        Presidents of Maldives, Malawi, Israeli PM, US Secretary of State congratulate India on reaching vaccination milestone        Australia recover to post 152/5 as Kohli emerges as sixth bowling option        No application for virtual internship to be entertained: Sebi        IMF Chief Economist Gita Gopinath to leave job and return to Harvard University        Nepalese national raped in Delhi's Amar Colony area        Kerala rains: 39 dead, 3851 families in rehabilitation camps, says CM Pinarayi        Samajwadi Party has deviated from 'samajwad' to 'pariwarwad': PM        Orthopaedic problems in growing children        Delhi CM meets ace chess player Tania Sachdev, asks Sisodia to felicitate her        Adani group companies to invest over $50-70 billion in renewable energy value chain        Sirajuddin Haqqani meets families of slain suicide bombers, calls them 'heroes of Islam, country'        Modi government failed to control violence in J&K: Rahul        Air Customs officials seize gold worth around Rs 1.42 crores at Kannur Intl Airport        29 killed in Nainital, Almora in Uttarakhand rains        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
add add BSE ready with technology for launching electronic gold receipts
 
New Delhi: Leading stock exchange BSE is ready with its technology to introduce electronic gold receipts (EGRs) on its platform, which will help in creating uniform price structure of the yellow metal across the country, its chief business officer Sameer Patil said on Sunday.

The exchange will take the required internal approvals and apply to markets regulator Sebi for the launch of the new class of security on its platform, he added.

This comes after the Sebi board on Tuesday cleared a proposal for gold exchange, wherein the yellow metal will be traded in the form of EGRs and will help in having a transparent domestic spot price discovery mechanism.

Currently, India allows trading only in gold derivatives and Gold ETFs, unlike several other countries which have spot exchanges for physical trade in gold.

The instruments representing gold will be called Electronic Gold Receipts (EGRs) and it will be notified as securities.

EGRs will have trading, clearing and settlement features akin to other securities that are currently available in India.

"BSE, which is well known for its technological prowess, has been the main proponent of creating a transparent and efficient spot market for gold as it is very important commodity for Indian consumers," Patil told PTI.

He, further, said the exchange was preparing the technology for very long in this market and was awaiting for the in-principle approval for the same to take it further.

The exchange had made several presentations to government and regulators on how the process will work. How the participants of various types including banks, vaults, wholesaler, retailer, importers, exporters etc will participate in this ecosystem.

According to Patil, like shares, these EGRs will be held in demat form and can be converted into physical gold when needed.

To enable trading in physical gold, EGRs (backed by physical gold) will be traded and settled on stock exchanges.

Patil said that the entire trading will be done in three tranches that include conversion from physical gold to EGRs, trading of EGRs and again conversion of EGR back to physical gold.

To begin with, BSE may plan to launch EGR of 1 kg and 100 gm denominations and the same can be converted to physical gold. To attract retail investors, EGR with smaller denominations of 50 gm, 10 gm and 5 gm will also be launched in a phased manner.

The source of supply of the physical gold to be converted into EGR will be the fresh deposit of gold, coming into the vaults, either through imports or through stock exchanges accredited domestic refineries.

A client can also convert physical gold to EGR by depositing physical gold at the designated delivery centre. Exchanges will empanel Vault Service Providers (VSPs) based on guidelines prescribed by Sebi.

Similarly, clients can redeem EGR's back to physical gold, and the process is complete. An interface will be developed between the vault managers (of physical gold), depositories (that hold EGRs in demat) and stock exchanges and clearing corporations that clear the trade.

The move is expected to reduce the existing market inefficiencies that exist in bullion trade and may act as a bridge in integrating spot gold trade with derivatives markets and create a transparent platform for bullion trading.

In addition, a single point trading for both spot and derivatives would provide scale, liquidity and better pricing for all market participants by bringing down cost and cycle time significantly.

Moreover, trading in EGRs will contribute to the existing programs for gold monetization such as Gold Monetization Scheme (GMS), Gold Bonds and Gold Deposits.

In union budget 2021-22, Finance Minister Nirmala Sitharaman announced setting of a gold spot exchange and Sebi will be the designated regulator for the proposed gold exchanges.


Milma launches ‘Deepavali Gift Box’
No application for virtual internship to be entertained: Sebi
Adani group companies to invest over $50-70 billion in renewable energy value chain
Kristal crosses 500 million dollars AUM landmark
RIL group firm to buy 40 per cent stake in designer Manish Malhotra's eponymous brand
Infosys COO Pravin Rao to retire, new structure in coming weeks
Zee-Invesco boardroom fight turns murkier, Zee claims Invesco offered dubious deal that could have caused shareholders Rs 10k crore loss
FM Sitharaman begins packed US visit, meeting with top investors planned
Fuel prices hiked again, diesel crosses Rs 100 mark in Mumbai
Federal Bank gets authorisation to collect Direct and Indirect Taxes
Tanishq launches two large-format stores in Hyderabad
SurveySparrow opens new office in Chennai
Federal Bank ties up with CredAvenue
ESAF Bank launches 'Supreme' current account product for NRIs
Indian economy's fundamentals strong; private investment picking up: Panagariya
Maruti Suzuki sales down to 86,830 units in Sept 2021
Flipkart and Myntra CEOs promise to explore growth prospects in Andhra Pradesh
42Gears Announces Zero-Day Support for Windows 11
Muthoot Finance launches AI Virtual Assistant ‘Mattu’
LIC inks historic agreement ‘print to post’ with department of post
KERALA NEWS
CGH Earth plans 10 caravan parks across Kerala
 Thiruvananthapuram, Giving a big push to Kerala’s stakeholder-friendly “Keravan Kerala” initiative,  
Kerala rains: 39 dead, 3851 families in rehabilitation camps, says CM Pinarayi
Air Customs officials seize gold worth around Rs 1.42 crores at Kannur Intl Airport
Expert committee to decide on opening of dams in Kerala: CM
INTERNATIONAL NEWS
Arrest warrants against 12 war criminals in Bangladesh
 Dhaka, The International Crimes Tribunal (ICT) of Bangladesh on Thursday issued arrest warrants agai
IMF Chief Economist Gita Gopinath to leave job and return to Harvard University
Sirajuddin Haqqani meets families of slain suicide bombers, calls them 'heroes of Islam, country'
Dhaka University students, teachers protest against attacks on Hindus
NATIONAL NEWS
Cabinet hikes DA for central govt employees
 New Delhi, Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved a 3% hike in
Nepalese national raped in Delhi's Amar Colony area
Modi government failed to control violence in J&K: Rahul
Home Minister reviews security in a meeting with top police officials
Untitled Page
Rashtra Deepika LTD
Copyright @ 2021 , Rashtra Deepika Ltd.